Free Newspapers in the United States: Alive and Kicking

Abstract

Free newspapers are a substantial segment of the U.S. newspaper industry, as well as an under-studied topic within media research. This study considers the economic health of free newspapers in the United States and whether they face a dire future given their heavy reliance on advertising, a source of revenue that has been in decline for newspapers. One question guiding this research is whether free newspapers face two options: continue producing free content by relying on advertising (in addition to other revenue sources), or abandon the advertising-based business model. Seven research questions address a number of issues, such as whether free newspapers are profitable, if decision-makers are considering changing their business model, whether they are seeking alternative sources of revenue, whether reader engagement is connected to the price, or a lack of one, of a newspaper, and whether decision-makers are optimistic or pessimistic about the future of their industry. A Web-based survey asked decision-makers at free newspapers in the United States to respond to questions related to the health and future of their newspaper or newspapers. This survey was complemented by in-depth interviews with publishers of four different types of free newspapers in Texas. The study concludes by suggesting free newspapers are not only viable but in many markets they are thriving. Sweeping generalizations (often seen in industry discourse) about the future of print newspapers can be misleading. This study contributes a reality check and calls for further research on the economics of print media in the digital era.

Notes

1. The four decision-makers consented to be interviewed and to their names being used, as per rules monitored by the Institutional Review Board at the University of Texas at Austin.